What is causing the surge in AI startup valuations, according to Orlando Bravo?

Orlando Bravo stated that venture capital firms' fear of missing out on AI deals is driving extremely high valuations.

How will AI impact software companies, according to Thoma Bravo?

Thoma Bravo believes AI will be transformational but will disrupt less than half of software companies, especially those with technical competencies.

What is Thoma Bravo's stance on investing in AI?

Thoma Bravo is "all-in" on AI from an enterprise software standpoint, viewing it as a transformational technology.

Home / Business and Economy / AI Frenzy: Billionaire Warns of Sky-High Valuations

AI Frenzy: Billionaire Warns of Sky-High Valuations

23 Jan

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Summary

Venture firms are intensely investing in AI stories due to FOMO.
AI may disrupt less than half of software companies.
Thoma Bravo sees AI as transformational for enterprise software.

AI Frenzy: Billionaire Warns of Sky-High Valuations

Valuations for artificial intelligence startups have surged to unprecedented heights, largely propelled by venture capital firms experiencing intense fear of missing out on the next major investment. Orlando Bravo, co-founder of Thoma Bravo, highlighted this phenomenon, stating that firms are eagerly investing in any AI-related story they can find.

Bravo's firm, which manages approximately $180 billion in assets and has a portfolio heavily weighted towards technology, believes AI will be "transformational" for enterprise software. However, he also cautioned that AI is expected to disrupt a substantial percentage of software companies, particularly those whose primary strengths lie in technical expertise.

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